The report presents trends and forecasts for coal demand, supply and trade by grade and by region.

Trajectory of Coal Usage

• Coal Demand: It is expected to shrink in advanced economies accompanied with growth in few emerging economies E.g. India, China, Indonesia.
  • India: It is expected to see the largest increase in coal demand based on high power demand linked to economic growth.
• Coal Production: Globally, it is expected to reach an all time high in 2024 and then flatten through 2027.
  • India is expected to be the largest contributor to global coal production growth. 
  • Indian coal production increased by 10% (2023), exceeding 1 billion tonnes for the first time. 
  • In 2024, coal production is expected to have grown by 8%.

Reasons for persistent usage of coal

• Rising demand: Linked to power, industrial growth, and infrastructure development to fulfill goals of economic growth.
• Weather-related fluctuations: Fluctuations in power generation by renewable sources like wind and solar are offset by constant, reliable and affordable coal power.
• Electrification of services previously provided by other fuels: E.g. mobility and industrial heat, and emerging industries such as data centres and AI.
• Profitability of Coal Exporters: It surged after Covid-19 and the energy crisis of 2022.